047: Biblical Investing—Understanding Risk
Faith and Finances
English - April 14, 2017 10:00 - 31 minutes - 21.7 MB - ★★★★ - 13 ratingsChristianity Religion & Spirituality Business Investing bible christ personalfinance Homepage Download Apple Podcasts Google Podcasts Overcast Castro Pocket Casts RSS feed
Entering into the investing world with a healthy, realistic view of the various risks is vital to a successful experience. Without some risk, there is no respectable growth.
If you search online for the word risk, you’ll find:
–verb. “to expose to the chance of loss.”
So, why take any risk at all?
For the investor there is an expected reward for the risk taken—the growth of an investment.
In This Episode, We Look At:
Some risks can be eliminated, some mitigated, and others can be taken on with confidence
Liquidity Risk (not having access to your money) – can be eliminated
Inflation Risk – can be mitigated
Single Company Risk – can be eliminated through diversification
Capital Risk – can be mitigated through:
Proper Diversification
Owning many asset classes that are dissimilar
Including fixed income in the portfolio to decrease market volatility
Volatility – Prices and values tending to fluctuate sharply and regularly
One Thing You Can Do Today to Improve Your Faith and Finances:
Remember that the investor anticipates a reward for the risk taken (over a long period of disciplined investing) and several risk factors can be eliminated or mitigated in your portfolio. Seek advice from a licensed, Registered Investment Advisor Representative before investing.
What Are Your Thoughts?
If you have a question or comment about today's topic, we invite you to share your thoughts.
Entering into the investing world with a healthy, realistic view of the various risks is vital to a successful experience. Without some risk, there is no respectable growth.
If you search online for the word risk, you’ll find:
–verb. “to expose to the chance of loss.”
So, why take any risk at all?
For the investor there is an expected reward for the risk taken—the growth of an investment.
In This Episode, We Look At:
Some risks can be eliminated, some mitigated, and others can be taken on with confidence
Liquidity Risk (not having access to your money) – can be eliminated
Inflation Risk – can be mitigated
Single Company Risk – can be eliminated through diversification
Capital Risk – can be mitigated through:
Proper Diversification
Owning many asset classes that are dissimilar
Including fixed income in the portfolio to decrease market volatility
Volatility – Prices and values tending to fluctuate sharply and regularly
One Thing You Can Do Today to Improve Your Faith and Finances:
Remember that the investor anticipates a reward for the risk taken (over a long period of disciplined investing) and several risk factors can be eliminated or mitigated in your portfolio. Seek advice from a licensed, Registered Investment Advisor Representative before investing.
What Are Your Thoughts?
If you have a question or comment about today's topic, we invite you to share your thoughts.